Synopsis
Capillary Technologies saw a strong financial performance with a 26% rise in operating revenue for the March quarter. The company's profit after tax surged by 233%. This growth was fueled by expanding its customer base, securing new contracts, and integrating its recent Kognitiv acquisition. Capillary also highlighted its strategic partnership with a US retailer and its expanding global reach.The company’s operating revenue for Q4 FY26 rose to Rs 191.3 crore from Rs 152 crore a year earlier. Its adjusted Ebitda increased 28% YoY to Rs 35.7 crore, while profit after tax (PAT) surged 233% to Rs 43.3 crore.
For FY26, operating revenues grew 23% to Rs 734.6 crore, while adjusted Ebitda climbed 43% to Rs 106.9 crore. PAT rose 270% to Rs 52.3 crore, compared with Rs 14.1 crore in FY25.
Total expenses for the quarter stood at Rs 156.3 crore, up 26% from Rs 124.2 crore a year earlier, in line with higher operating costs linked to business expansion and integration of acquired businesses.
The company also reported exceptional income of Rs 24.9 crore related to the Kognitiv acquisition, while normalised PAT adjustments included IPO expenses of Rs 3.24 crore and gratuity expenses of Rs 1.61 crore linked to the implementation of the Direct Labour Code.
“We delivered a strong quarter, driven by Net Retention Rate (NRR) expansion, the continued addition of large enterprise clients globally, and early integration synergies from the Kognitiv acquisition,” said Aneesh Reddy, the company’s founder and CEO.
He highlighted the recent acquisition of SessionM from Mastercard, saying it strengthens Capillary’s market position and provides access to a portfolio of Fortune 500 brands.
“Our proprietary AI platform, aiRA, is gaining traction, and we are actively leveraging AI to streamline customer migrations and drive enterprise-wide productivity within Capillary,” Reddy said.
Capillary has continued investing in R&D, go-to-market expansion, and inorganic growth opportunities following its November 2025 listing, in line with its acquisition-led growth strategy. The company has completed seven acquisitions so far, including Brierley+Partners, Persuade, and MartJack, to strengthen its AI-powered loyalty management and customer engagement offerings globally.
According to the company’s investor presentation, its annual recurring revenue (ARR) rose 26% YoY to Rs 765.4 crore by the end of FY26, while organic net revenue retention stood at 114%. Subscription revenue, which contributed to 89.4% of total revenue in Q4 FY26, grew 24% YoY to Rs 170.9 crore.
The company also disclosed that it had signed a five-year strategic partnership with a US Fortune 50 retailer in March, in a deal worth more than $20 million.
Capillary said it ended FY26 with 115 customers, including 20 Fortune 500 companies, across 49 countries. The company reported cash and bank balances of Rs 506.9 crore as of March 31, 2026.
Capillary had raised Rs 345 crore through a fresh issue in its IPO, lower than the Rs 430 crore initially planned, while the offer-for-sale component was reduced to 9.2 million shares from 18.3 million.
On Wednesday, the company's shares were trading at Rs 575 at 2 pm on the NSE, 6.41 % higher compared to the previous trading session.
